Missouri was the last in the country without online sales taxes following a U.S. Supreme Court decision in 2018 that allowed such collections. That changed on June 30, 2021, when Missouri became the last state in the USA with a sales tax to require out-of-state sellers and marketplace facilitators to collect and remit sales and use tax equal to sales taxes placed on purchases from brick-and-mortar stores. Missouri now collects tax on purchases made from out of state businesses that annually sell over $100,000 of product in Missouri.
However, there will be two very important questions on the April 5, 2022, ballot:
- Saint Louis County PROP C asks whether, under the new state law, voters will approve a county USE TAX which would be applied to online purchases at the same rate as the county’s local sales taxes, depending on where residents live. The total countywide sales tax rate is 3.5%. Out of state and on-line purchases would be taxed at the same rate as purchases from Missouri merchants. Some municipalities collect a local sales tax as well.
- Village of Glen Echo Park PROP U asks whether the voters of Glen Echo Park will allow the municipality to collect a local tax from on-line sales equal to the local sales tax.
Glen Echo Park Tax Revenue
Glen Echo Park receives the largest part of our operating revenue from the county sales tax pool. The amount we receive each year is awarded on a per capita basis. The 2020 US Census indicates that the Village has lost population since 2010. That means, that we get a smaller share of a dwindling pool of money as more people shop online and buy out of state goods. Glen Echo Park PROP U could potentially generate revenue from on-line and out-of-state sales in addition to our share of the revenue that PROP C could generate if it passes. Our share of Prop C revenue would be awarded on a per capita basis at the same rate as the County sales tax.
|Year||Glen Echo Revenue from County Sales Tax Pool||Total Glen Echo Annual Revenue from all State and County Tax Sources||% Glen Echo Revenue from sales tax|